Since it was a surprise about financial issues and a layoff, I am constantly looking for any info on SAE or Navitas financials. I just found this article posted yesterday about Navitas taking out an additional $125ML in loans increasing a loan debt to $400ML. This is for new initiatives over 5 years. It seems aggressive since they lost one of their major pathway partners which resulted in a 30% revenue decline. http://www.businessnews.com.au/article/Navitas-gets-more-debt-firepower
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Since we hadn't had raises in years, I was happy to get one. But I bet the amount of raises equated to the amount needed to be shed in payroll. Survivors guilt
55030 - don't expect any more increases again. I'm glad we got one this year. Probably because they didn't realize how f***ed up our balance sheet was.
Honestly, I think there's something more here. In the last 6 months, Navitas lost a major pathways partner and identified visa fraud at other countries. I'm calling it that the refinance and funds are nit going to new initiatives but rather financial issues and obligations. I've seen this before.
I agree with Anonymous54933......being laidoff sucks no matter what the reasons are but they really suck when its because of mis management of funds, budgets or whatever you want to call it and then we are the collateral damage. Being laidoff because people no longer want to purchase your product that I can at least understand and wrap my brain around......but what happened here was just crazy
54891 - agreed that this is common practice. But isn't Navitas also responsible with how they manage their funds? There was obviously no oversight in the US which got out of hand and good people lost their jobs because of it. The layoff was not due to market change. Growth could have been conservative. Gross negligence on the part of Navitas, SAE Global and top US management could have avoided this layoff, people's livelihoods. Layoffs happen in business all the time. It's more disheartening when it's due to poor management and neglect and not a market downshift. Navitas is not desolate, they are not broke. Navitas could have at least taken responsibility with severances that were more than a week or two for most people. Yes, severance is not an obligation. And yes, this is an at will state as most states are. But at will exists to protect companies from outlandish class action lawsuits and being taken advantage of. Not for companies to, in reverse, take advantage of to save a pretty penny. What they did was not illegal. But there still is an ethical responsibility. Navitas could afford the ethical responsibility being that they were all responsible for poor management decisions.... But they chose not to.
Increasing corporate debt ability is quite common and a reasonable thing for a business to do - It just gives the business the ability to spend for expansion if they opportunity arises. I wouldn't read too much into it.
Another article on this topic... https://au.news.yahoo.com/thewest/a/25837007/navitas-refinances-expands-debt/
54840 - with NavitAs being our mother ship, it's good to know if they have a hole in the bottom of their boat and are sinking. I've been here since before Navitas bought SAE. And all I've heard is that SAE has been a money pit. Truth us, will we ever know if we are financially strong or not?
Who cares how much Navitas is spending. It really has little to do with SAE.
It's deceiving calling it "fire power". It's like a person getting excited over receiving a credit card with an extensive credit line. When the excitement should be from increasing your earning potential NOT INCREASING YOUR DEBT.